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Kemi Badenoch Defends VAT Refund Proposal, Comments on Grenfell Council Referral and London Election Outlook

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Core Statements and Policy Positions

Business Secretary Kemi Badenoch said that, although she opposed the earlier decision to allow foreign visitors to reclaim the 20 % VAT on purchases in London, she now supports re-introducing the scheme. She noted that she visited Japan to examine how a similar system operates and that, as party leader, she wants the policy to return. Badenoch also addressed the recent referral of Kensington and Chelsea Council to the Crown Prosecution Service for corporate manslaughter over the Grenfell Tower tragedy, expressing sympathy for the victims while emphasizing that the council has been cooperating with the investigation. Regarding the Holborn and St Pancras by-election, she clarified that the Conservatives have never contested that seat, describing it as a solid Labour constituency, and highlighted recent gains in other London boroughs such as Westminster and Wandsworth.

Background on VAT Refund and Building-Safety Legislation

The VAT refund for overseas shoppers was introduced by the Treasury while Badenoch served as a Treasury minister, a move she described at the time as a “costly relief” that did not benefit the whole United Kingdom. Three years ago, in her capacity as Business Secretary, she called for the policy’s return, citing examples from abroad. In the wake of the Grenfell fire, the government has passed a series of building-safety measures intended to prevent a repeat of the tragedy; Badenoch referenced this legislation when discussing the council’s referral.

Official Response to the Grenfell Council Referral

Badenoch said the referral of Kensington and Chelsea Council to the Crown Prosecution Service is “disappointing” but that the legal process must run its course. She affirmed that the government has introduced extensive building-safety reforms to ensure such incidents do not recur, positioning the referral as part of broader accountability efforts.

Conservative Performance in London Councils

When asked about the party’s standing in London, Badenoch pointed to recent electoral successes, noting that the Conservatives have taken control of several key boroughs, including Westminster and Wandsworth, and that voter sentiment appears to be shifting back toward the party. She dismissed any implication that the party’s lack of a candidate in Holborn and St Pancras reflects broader weakness, emphasizing that the constituency has historically been Labour-held.

Outlook and Next Steps

Badenoch indicated that the VAT refund proposal will be pursued as part of the Conservative agenda, while the outcome of the CPS case against Kensington and Chelsea Council remains pending. She signalled continued focus on strengthening building-safety regulations and expanding Conservative representation across London’s local authorities.